Queensland's disaster relief funding under threat from federal government

By Tony Moore

National disaster funding to Queensland from the federal government is under serious threat with authorities wanting to reduce federal payouts from 75 per of costs to just 50 per cent of the costs.

A final decison wil be made before Christmas in the lead-up to Queensland's cyclone season.

Cyclones have caused billions of dollars of damage to Queensland.

Photo: AFP photo

That would mean the Queensland Government and its councils would have to pay billions of dollars extra to clean up after severe damage from floods, cyclones, storms and bushfires.

The Queensland Government paid $3.5 billion in NDRAA funding to Queensland's $14 billion disaster bill over the past six years, its submission to the Productivity Commission points out.

Northern Queensland town of Halifax inundated after heavy rain in the wake of Cyclone Yasi.

Photo: Craig Abraham

Advertisement

Local Government Minister David Crisafuli – in charge of Queensland's disaster recovery – released a statement on October 31 that said Queensland would have lost $5 billion in disaster funding from the federal government if the changes had been in place.

The World Bank estimated the 2010-2011 floods caused US$15.9 billion in total damages and economic losses to Australia.

In Queensland alone there has been $14 billion in NDRAA damage and 43 lives lost in the past seven years from statewide floods and successive cyclones through North Queensland.

Cyclones Yasi (2011), Oswald (2013) and Ita (April 2014) wreaked havoc on North Queensland in the past three years.

The Federal Government's NDRAA funding – National Disaster Relief and Recovery Arrangements – also helped Brisbane and much of Queensland recover from those 2011 and 2013 floods.

It helped Brisbane City Council re-build the Riverwalk and the city's CityCat and ferry terminals after the disastrous 2011 floods.

The Federal Government provided $54 million for the cost of the $74 million 850-metre Riverwalk between the CBD around the New Farm.

The remaining $18 million came from the Queensland Government, while Brisbane City Council pays for the ongoing maintenance.

The Productivity Commission held hearings in Brisbane last month and unveiled two major changes to its draft funding models.

Under current funding agreements, when damage is over $180 million, the federal government will pay 75 per cent of the damage. Below that it will pay 50 per cent of the damage.

Under the Productivity Commission's proposed funding the federal government will only pay 50 per cent of damage costs, regardless of the damage bill.

It also suggests that the federal government will provide matching funds for disaster "mitigation" only if the state government agrees to "matching" funding.

The Queensland Government, Brisbane City Council and the Local Government Association of Queensland have all lodged submissions opposing the idea.

The issue will be debated in today's Brisbane City Council meeting, with both Lord Mayor Graham Quirk and Council Opposition Leader Milton Dick opposing the recommendation.

Lord Mayor Graham Quirk said the recommendations were "skewed" and simply wrong.

"Brisbane is built on a natural flood plain and no mitigation measures will ever eliminate the possibility of flooding in Brisbane," Cr Quirk said.

"Skewing funding arrangements in favour of mitigation projects rather than recovery projects will have a major impact on Brisbane's ability to recover from a flood event similar to January 2011," he said.

"Council has relied on a number of major infrastructure projects being delivered through the Natural Disaster Relief and Recovery Arrangements, including seven Ferry Terminals that were damaged during the 2011 floods.

"Without this financial assistance, Council would have been unable to deliver the ferry terminals that were essential after flood damage."

Opposition Leader Milton Dick said he was concerned that Cr Quirk was not making his criticisms loud enough about the proposed funding cuts.

"I'm concerned Graham Quirk isn't doing enough as Lord Mayor of Brisbane and Chair of SEQ Council of Mayors, to make it clear to Prime Minister Abbott that we don't support making it harder for local Councils to recover from natural disasters," Cr Dick said.

"This report puts at risk local Council's ability to recover from natural disasters and waters down our ability to apply for funding," he said.

Cr Dick said it was clear if NDRAA funding was cut back councils would take years longer to recover from natural disasters like flooding, cyclone damage and bushfires.

"If these changes were in place during the January 2011 floods there is a good chance that Brisbane City Council wouldn't have been able to rebuild Riverwalk or the damaged ferry terminals," he said.

"It's a real worry in Brisbane, where one storm event can lead to flash flooding or a break in the banks of the Brisbane River can flood huge parts of our suburbs."

The Queensland Government has also objected, pointing out that – relative to the revenue received by the different levels of government – the Queensland Government has contributed "more than three times that of the Commonwealth."

"Queensland has done its share of heavy lifting, providing more than $3.5 billion in NDRRA funds over the past six years," their submission reads.

"In Queensland's view, the relative capacities of the Commonwealth and Queensland Governments to raise revenue and fund reconstruction are equitably reflected in the existing contributions to the NDRRA."

The 75/25 funding split for federal and state governments is the highest funding contribution for the federal government, the Queensland Government submission reads.

It says Queensland has always contributed more in direct funding, because of the "sliding" funding scale in place.

Mr Crisafuli said if the changes were in place, Queensland would have to find an additional $5 billion in disaster funding.

"If these changes had been in place over the last half-decade Queensland would have been $5 billion worse off," Mr Crisafuli said.

"If this draft proposal is adopted Queenslanders would be left on their knees and today we're sending a message loud and clear to the Productivity Commission.

"If this change is approved, either ratepayers would be slugged with a bill they couldn't afford or some roads or bridges just wouldn't be repaired."

Councils are unsure how the changes will impact the $80 million Betterment Fund put in place last year, where the federal and Queensland governments put in $40 million each.

The Productivity Commission's final recommendation will be made before Christmas.